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Market Status Changed to a Downtrend; HCL Tech Signs Deal with UD Trucks

Posted Date: April 19 2021
Today’s Action

Nifty, -1.8%; Sensex, -1.8%; Nifty Midcap, -2.1%; Nifty Smallcap, -2.4%; Model Portfolio, -2.2%

Market Pulse: Downtrend

Nifty gapped lower by more than 300 points this morning. It breached its April 12 low (12,248) and made a new low of 14,192. Buying was seen at the day’s low, which helped Nifty close above 14,350. On the sectoral front, Nifty Bank, Auto, and Fin Services closed 2–3% lower. On the flip side, Nifty Pharma closed in the green. The advance-decline ratio was in favor of decliners. Of the 2,297 stocks traded, 398 advanced, 1,535 declined, and the rest remained unchanged.

We had changed the market status to a Rally Attempt from a Downtrend on Friday after Nifty managed to hold above the previous correction low (14,248) for three consecutive days. But today, as Nifty breached that low, we are back in a Downtrend.

Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above today’s low (14,192) for three straight sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength with good accumulation.

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

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